Eurozone unemployment

Just like a year ago, we are hearing a lot of guff about how the euro crisis is over, and just like a year ago the people I talk to in Brussels are becoming increasingly alarmed by the complacency of the European establishment. It does seem as though the only thing that makes Europe’s useless political class worry is the risk of imminent cardiac arrest, as proxied by bond yields and the like; but the cancer of unemployment will do just as much damage if allowed to progress unchecked.

Here are the latest Eurozone unemployment statistics. Just because we are becoming used to this sort of news does not mean that they are even remotely acceptable. They are grim.

There are certain costs that are obviously not worth paying to keep the EMU experiment going. One is a dilution of the continent’s democratic traditions. Another is unemployment rates of the sort we are seeing in Spain and Greece. No doubt crocodile tears will be shed by supporters of status quo macroeconomic policies, but such responses are no longer acceptable. EMU supporters, and €-sceptics who are worried about the costs of an EMU break-up, now have to start being very concrete in terms of proposing Eurozone economic policies, including short run monetary and fiscal policies, that can start reversing these trends in 2013. (A group of us tried to do so here, for example.) And then we need to see such policies being implemented, quickly.

You have to live through times like this to really appreciate the wisdom of Keynes’ famous line about the long run.

Panel comments by Governor Patrick Honohan at BIS Conference on “Sovereign Risk: A World without Risk-free Assets”

Paper here.

IKEA: Product, Pricing, and Pass-Through

Another price paper (over a longer time period) – available here.

Syndicated Tap of 2017 Bond

The NTMA have announced:

NTMA Announces Syndicated Tap of 2017 Bond

7 January 2013 – The National Treasury Management Agency (NTMA) has today announced to the market that it will seek to raise new money through a syndicated tap of its 2017 Treasury Bond in the near future, subject to market conditions.

A syndicated tap is the sale, at a pre-determined price, of additional amounts of an existing bond through a number of appointed banks and is open to all institutional investors. The NTMA has mandated Barclays, Danske, Davy, RBS and Société Générale as joint lead managers for the transaction, details of which will be announced in due course.

The finer details are scarce for the moment.  Someone referred to it as a “massive step”.  The indicative five-year yield as calculated by Bloomberg is here.

UPDATE: Results here.

Conor Killeen on How to Negotiate with Germans

Hidden away in the Business section of today’s Irish Times,

here

some thought-provoking advice from Conor Killeen of Key Capital deserves a thread.